The hedge fund industry is changing, with institutional investors, in particular pension funds, becoming an increasing proportion of assets under management. How investors access hedge funds is changing. Institutional investors are demanding improved transparency and customization. Customizing the investment mandate and commercial terms is sought to ensure allocations complement investors’ wider portfolios. Managed accounts are the key to this evolution within the hedge fund industry.

This publication is designed to provide supplemental technical guidance on key issues when applying the new revenue model to sales of real estate, focusing on the implications to U.S. GAAP reporting entities. This publication addresses some of the common questions about the new standard’s effects on sales of real estate and we hope it will provide a starting point to advance the dialogue on these and other issues.

For companies that are subject to SEC independence rules, the firm will no longer bind audit reports to their financial statements. The regulators have continued to stress that the financial statement preparation process is the responsibility of management and that the responsibility as auditors is to express an opinion on the financial statements. The impact of this policy change will require additional controls by the companies we audit and their third-party administrators to ensure the accuracy of the financial statements being issues to their stakeholders.